7.3.14.2 Specifying Future Date for Fee Liquidation

You can specify a future date as the value date for fee liquidation, if required. When you book a future dated Fee payment, events are fired, but there is no accounting entries for these booking events. You can generate Fee advices when you save a future dated fee liquidation by tagging suitable advices to the instruction booking event.

You can reverse a future dated Fee payment instruction, if required. Events are generated during the reversal of future dated payment instruction.

The following are the events generated while booking a future value dated Fee payment and reversing the same:

Event Code	Event Description	Sequence of Occurrence
BFLQ (Facility, Tranche & Drawdown Products)	Booking of Future dated Fee liquidation	Triggers while booking the future value dated Fee liquidation.
RFLQ (Facility, Tranche & Drawdown Products)	Reversal of Future dated Fee Liquidation	Triggers while reversing the future value dated Fee liquidation.

Batch process created for processing forward dated Principal and Interest payment instructions will be enhanced to process the future dated Fee payment instructions on the value date of the instruction. When you initiate the batch, accounting entries are passed based on the settlement accounts prevailing at the value date of liquidation.

Note:

• If the Utilized or Commitment Fee amount has changed between the booking date and the Fee payment value date, system will log an exception due to the mismatch in the amounts and Fee payment will not be processed.
• If you try to amend the Participant Ratio (PRAM) between the book date and value date of future dated Fee liquidation, an override message is displayed informing about the existence of the underlying Future dated Fee liquidations. In such cases you can perform any of the following actions:
  • Reverse the Future dated Fee liquidation and re-input the same which would generate an advice having the latest ratios.
  • Send a revised free format advice stating the ratio changes for the underlying Future dated Fee liquidation
• Schedule amendments, as part of Contract Amendment or Fee Amendment, is allowed only for those schedules for which future dated payment instructions are not captured.
• A schedule captured for a future dated liquidation, does not get populated to the next Future dated Fee liquidation.
• You can not perform partial Future dated Fee liquidations